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Robert Reich refers to 'the bubble'. What is 'the bubble'?

User Mikl X
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Final answer:

'The bubble' refers to an economic phenomenon where the value of a particular asset becomes artificially inflated and then collapses, leading to financial crises and recessions. Examples include the housing bubble in the mid-2000s and the dot-com bubble in the late 1990s.

Step-by-step explanation:

'The bubble' refers to an economic phenomenon where the value of a particular asset, such as housing or stocks, becomes artificially inflated and then collapses. This can lead to financial crises and recessions. For example, the housing bubble in the mid-2000s saw housing prices increase significantly before crashing in 2007 and 2008, contributing to the Great Recession. Similarly, the dot-com bubble in the late 1990s saw a rapid increase in the value of internet-based companies before the bubble burst. These bubbles occur when investors drive up prices based on speculation and unrealistic expectations, creating an unsustainable situation.

User ThorstenC
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